Midday Update 2 2022-12-22

The equity market is as chilled as the air

I had a mistake on my last chart so wanted to update the 24-minute ES chart and also including a 240-minute for context.

My attempt to count a third wave earlier didn’t work out as they kept grinding lower. I still think it likely that we should look for a wave [III] low, perhaps in as I type, followed by a wave [IV] bounce and another low, perhaps tomorrow, to finish off [V] of v of (i) for the first major impulse down from wave [b]. This will allow a sort of delayed Santa rally in wave (ii) before the bears come back strong in the new year.

Working on [IV]?

What complicates things is we did get a new swing low and thus have to be open to wave v of (i) being complete.

A little lower for wave (i)?